Smoothing Short Duration Capacity Problems in Enterprise Resource Planning (ERP) Systems: An Algorithmic Approach

2014 ◽  
Vol 933 ◽  
pp. 860-868
Author(s):  
Muneam Zamzeer Al-Magsoosi

Successful implementation of ERP systems should take full advantage of the access to information, but not be constrained by many of the deficiencies associated with infinite capacity scheduling methodologies. In this paper an algorithm is developed which improves the performance of the ERP system. Lot sizing decisions based on capacity availability are used as an instrument to integrate more effectively capacity requirements planning (CRP) and Material Requirements Planning (MRP). MRP is a planning tool for a sub-set of manufacturing system specially in hierarchal multi-product, multi-period and multi-stage production planning and inventory control system. The Vehicle used for this integration is planned order release (POR) quantity. The algorithm requires minimal deviation from the MRP logic. In this sequential process MRP first issues the action notices and then the algorithm analyses the capacity situation in the work centers. The algorithm scans all planned order release quantities of lower level items in the action bucket before orders are released to the shop. For each item a delta value is computed identifying the degree orders are contributing to capacity problems. This delta is specific to each POR. The POR causing the highest overload and the one passing through the lowest utilized work centers are selected for a lot size decrease, respectively, an increase. After identifying the candidates, a series of checks analyses the suitability of the candidates for that change. The planned order release quantities of more items can be performed. Projected capacity profile after iteration will be updated and capacity requirements over a short duration are smoothed. The experiments are performed with MAP/3000 as a simulation model for this study. The developed algorithm is added to MAP/3000 as additional subroutines. The design of the experiments consists of a base test identifying the significance of different environmental parameters of MRP systems and a main test which performs a detailed evaluation. The results are evaluated using analysis of variance techniques. Most ERP systems built on the historical development of MRP and CRP systems, and the assumption of infinite capacity is affecting the performance of those systems badly. This paper is presenting an algorithm to smooth capacity problems by using the existed capacity.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Luís Martins ◽  
Carlos Santos

Purpose This paper aims to investigate the changes caused by the use of the enterprise resource planning (ERP) systems in the accounting of organizations at different levels: organizational structure; processes; and employees. Design/methodology/approach The authors use a qualitative methodology with interpretative analysis through the study of five cases in Portuguese companies that implemented the Sage ERP X3. The data collection was carried out mainly through semi-structured interviews. Findings The results indicate that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees. These changes interact and cause modifications among themselves, which makes it difficult to identify the origin and sequence of changes related to the implementation of the systems. It was possible to identify the direct impact of the ERP system on the change of processes, which is reflected in the functions of the employees, as well as to verify that the ERP system provides the opportunity for companies to change their organizational structure. Originality/value This paper contributes to the accounting literature by providing evidence on the influence of ERP systems on organizational aspects of accounting in the Portuguese reality, attesting that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees.


2006 ◽  
Vol 21 (3) ◽  
pp. 165-175 ◽  
Author(s):  
Amany R. Elbanna

Claudio Ciborra's improvisation argument provides a realistic dynamic account of how organisational practices address technology. This was developed from the study of malleable open-ended technology, but little research has occurred to investigate the theory's validity within different settings. This paper seeks to address this gap, by examining improvisation in the context of a rigid highly structured technology. It presents findings from the successful implementation of an Enterprise Resource Planning (ERP) system within a large international organisation, which was subsequently defined by the ERP vendor as being an ‘exemplary site’. Through the theoretical lens of Actor Network Theory, the paper reveals the improvisation, enactments and constant work around the plan that took place in dealing with the high contingencies of ERP implementation. The study extends the discussion on improvisation and contributes to an already illuminating argument. It invites practitioners to reflect on ERP implementation practice and review their evaluation methods.


2017 ◽  
Vol 7 (3) ◽  
pp. 1719-1724 ◽  
Author(s):  
M. Soliman ◽  
N. Karia

Although the Enterprise Resource Planning (ERP) system has long been acknowledged in higher education institutions (HEIs) to improve their performance and efficiency, there are not many HEIs in Egypt that adopt ERP system and those that do are in an early stage. The research on ERP system in HEI is still limited and in the immature stage, hence little is known about the success factors for the adoption stage of ERP systems. Consequently, this article aims to understand what are the success factors for ERP adoption and further develop a conceptual model that explains the successful implementation of ERP in HEIs and its impact on competitive advantage. Based on previous studies, this paper identifies and conceptualizes success factors for ERP and further develops the proposed model for the adoption of ERP system in HEIs. This article contributes to the development of the theoretical framework of the successful implementation of the ERP system to explain the competitive advantage of HEI by merging information system (IS) success and diffusion of innovation (DOI) theories with the success factors for the adoption stage of ERP systems. The current study will provide recommendations and guidelines for both the potential adopters and the vendors on the successful ERP system adoption.


2013 ◽  
Vol 25 (2) ◽  
pp. 59-74 ◽  
Author(s):  
Timothy Paul Cronan ◽  
David E. Douglas

Critical to successful implementation and maximizing the potential benefits of enterprise resource planning (ERP) systems are knowledgeable and skilled users. Effective training for the required knowledge and skills is both difficult and challenging. Focusing on the assessment of ERP learning, this research develops learning constructs based on Kang and Santhanam’s (2003-4) collaborative application learning model. A valid and reliable ERP learning instrument that can be used to measure ERP learning and attitudes toward ERP is presented. The ERP learning instrument consists of three constructs (16 items) to measure ERP learning (business process knowledge, enterprise systems management knowledge, and transaction skills) as well as measures of attitudes toward ERP (instrument available from the authors at no cost) . The results of the study indicate that an ERP simulation game enhanced student learning and influenced student attitudes toward an ERP system.


2004 ◽  
Vol 31 (2) ◽  
pp. 263-271 ◽  
Author(s):  
Sangyoub Lee ◽  
Ahsan Ullah Arif ◽  
Hyounseung Jang

The enterprise resource planning (ERP) system can integrate the major business management functions of the enterprise with a single common database to allow sharing of all information and achieve efficient communications between management functions. Based on the needs of running a construction enterprise, ERP shows potential applicability to the construction industry. This paper sought to quantify the benefits of ERP systems when applied to construction materials procurement. Specifically, this paper briefly described the business processes involved in construction materials procurement and illustrated how ERP systems could be implemented and the efficiency of the construction materials management system consequently enhanced. The transformation from a non-ERP system into an ERP system through application integration, internal integration, external integration, and automation were simulated. Results show that the individual task improvements of models can increase the productivity of the materials management cycle by up to 5.2%, 18.2%, 27.8%, 13.5%, and 79.2% through internal integration, external integration, application integration, automation, and ERP system, respectively, by automating most of the repeated transactions and reducing manpower required to perform the tasks.Key words: enterprise resource planning, materials management system, productivity, simulation.


2004 ◽  
Vol 1 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Daniel E. O'Leary

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.


Author(s):  
Muhammad Shaikh ◽  
Libi Shen

Enterprise resource planning (ERP) systems are considered, by many, to be extremely solid, while giving organizations the ability to quickly capture and manage data across diverse sectors. Because the successful employment of an ERP system depends upon skillful implementation, specific factors contributing to successful ERP implementation are essential. What are the critical factors in the implementation of ERP system? How do company administrators and IT professionals perceive the critical successful factors for the effective implementation of the ERP? How are critical successful factors defined? How do IT professionals perceive the influence of critical factors on the effective implementation of ERP in a Phoenix company? In this chapter, the critical successful factors in the implementation of ERP systems will be explored. A single case study was conducted, and the interview data were gathered from 15 IT professionals in a Phoenix, Arizona company. Problems, solutions, recommendations, and future research direction will be presented.


Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.


Author(s):  
Chun Meng Tang ◽  
Govindan Marthandan

When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: “What are the returns on investment?” When the ERP system is implemented and in operation, business managers ask another question: “How successful is the system?” To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effectiveness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as a third-order construct manifested by three second-order constructs and ten first-order constructs.


Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.


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